New UBS Investor Watch Pulse Report, "Art in Motion," reveals
insights on the behaviors and buying trends of U.S.-based high net worth
collectors

Key Findings:

58% of fine art collectors have bought a piece of art without ever
having seen it in person—a percentage that has more than doubled from
last year (26%)

84% of collectors are either always looking or opportunistically
looking to add on to their collection with 58% planning to add to
their collection in 2019

57% see the artist's gender as a determining factor when purchasing
art, with 70% expecting to purchase works by women in the next year

UBS Global Wealth Management released today a new report that unveils
the majority of art collectors are going online and using social
platforms to stay at the forefront of the art market year round.
Released during Art Basel in Miami Beach, this special Investor Watch
Pulse Report, titled "Art in Motion," studies the attitudes and
behaviors of fine art collectors in the U.S. with at least $5m+ in
investable assets.

Art collectors increasingly comfortable buying art online

The percentage of art collectors who have purchased art online before
they've seen it in person has more than doubled in the past year (26
percent in 2017 vs. 58 percent in 2018), while 63 percent of collectors
polled have gone on the internet to participate in an online auction.

What's more, art collectors are beginning to feel the pull of social
media, using it as a resource to help them follow the art market
closely. Among the collectors, 67 percent follow an artist on social
media, while 65 percent have seriously considered buying art after first
seeing it through their social media platforms.

"The technological trends changing the economy are increasingly changing
the art market," said Karl Ruppert, Market Head of Florida Private
Wealth Management at UBS Global Wealth Management. "There are potential
opportunities presented through future growth of the online art market
to attract new buyers at different price levels, which is beneficial to
the health of the overall market. For gallerists, fairs, auction houses,
artists and collectors, digital tools will be a key area of growth over
the next five years."

Women artists on the rise, and so are the investments in them

Women artists are increasingly being recognized for their standout
contributions along with breaking their sales records — which hasn't
gone unnoticed among collectors. Almost three-in-five collectors see the
artist's gender as a determining factor when purchasing a piece, and 70%
plan on purchasing works by women in the next year.

"While male artists continue to lead overall sales within the market, we
found clients are increasingly recognizing that women artists are
undervalued," said Ruppert.

Collectors ready to buy, but cautious to sell

Collectors are eager to grow their art collection with half stating
they're always looking to add new pieces, and 34 percent are
opportunisitically searching. Moreover, 58 percent are ready to make an
addition in the upcoming calendar year, while 64 percent of fine art
collectors are gearing up to spend more than $100k on their new
additions in 2019.

More than half (58 percent) of these wealthy art enthusiasts view their
collections as their most prized possessions. Not surprisingly,
collectors are only willing to sell up to a third of their collection.

Passing along the passion: Concerns for art inheritance

When it comes to passing along their passion pursuit to the next
generation, 58 percent of art collectors are worried their heirs won't
know how to care for the collection and 57 percent are concerned about
taxes when passing on to the next generation.

Notes to Editors

About UBS Investor Watch Pulse Report

The UBS Investor Watch Pulse Report is designed as a shorter, "rapid
response" reaction to pressing issues of the day. For this special
edition 'Art in Motion', UBS surveyed 175 High Net Worth fine art
collectors with at least $5M+ in investable assets from November 14 -
26, 2018. The report offers insights on U.S.-based collectors' behaviors
and buying trends. UBS also published the 2017 UBS Investor Watch Pulse
Report, 'For the love of art'.

About UBS

UBS provides financial advice and solutions to wealthy, institutional
and corporate clients worldwide, as well as private clients in
Switzerland. UBS' strategy is centered on our leading global wealth
management business and our premier universal bank in Switzerland,
enhanced by Asset Management and the Investment Bank. The bank focuses
on businesses that have a strong competitive position in their targeted
markets, are capital efficient, and have an attractive long-term
structural growth or profitability outlook.

Headquartered in Zurich, Switzerland, UBS has offices in 52 countries,
including all major financial centers, and employs approximately 60,000
people. UBS Group AG is the holding company of the UBS Group. Under
Swiss company law, UBS Group AG is organized as an Aktiengesellschaft, a
corporation that has issued shares of common stock to investors.

For more insights and to download the report, visit
ubs.com/investorwatch.